Luxembourg: EU Intracompany Transferee Permit Forthcoming

On March 23, the new EU Intracompany Transferee (ICT) Permit will become available in Luxembourg. It will apply to non-EU qualified managers, specialists and graduate trainees temporarily assigned from an entity outside the European Union to an entity in the same corporate group in Luxembourg for a period of over 90 days. The ICT Permit will extend the duration of allowable stay in ICT status to three years but will introduce stricter rules for the previous experience requirement and a cooling-off period between assignments.

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On March 23, the new EU intracompany transferee (ICT) Permit will become available, abolishing previous ICT rules in Luxembourg. The new permit will apply to non-EU qualified managers, specialists and graduate trainees temporarily assigned from an entity outside the European Union to an entity in the same corporate group in Luxembourg for over 90 days. The new permit will be introduced pursuant to the EU ICT Directive.

It is still unclear whether foreign nationals who hold the current ICT Permit can extend their permit or whether they must apply for the new EU ICT Permit.

Admission Criteria

The ICT Permit will be available for managers and specialists who have worked at the sending entity for a period of three to 12 months, while graduate trainees must have worked for a period of three to six months to qualify for the permit.

Currently, there is no market salary requirement; however, it is likely that immigration authorities will impose the same salary level as local employees in the same position.

Duration of the Assignment

The ICT Permit can be issued for an initial duration of up to three years for managers and specialists and up to one year for trainees. After this initial period, the foreign national must leave Luxembourg and can only apply for a new ICT Permit from their non-EU country of residence after a six-month cooling-off period.

It is not yet clear if ICT Permit holders will be able to change their status in country at the end of their initial authorized period of stay or whether they will be able to work at a client site.

Processing Times

Initially, the processing times for the ICT Permit are expected to be between eight and 10 weeks. However, eventually, processing times are expected to range between six and eight weeks. Since Luxembourg does not have a system of accredited sponsorship, no expedited process will be available.

Accompanying Family Members

Qualifying dependents will be able to join the ICT Permit holder for the duration of the assignment in Luxembourg. However, dependents who seek to work must obtain separate work authorization.

Intra-EU Mobility

Under the new law, foreign nationals in possession of an ICT permit issued by another EU Member State will be able to work in Luxembourg for up to 90 days in any 180-day period following a notification process.

ICT Permit holders who seek to work for over 90 days in a 180-day period in Luxembourg will have to apply for a Mobile ICT Permit in Luxembourg. It is expected that market salary requirements will apply to Mobile ICT Permit applicants and to ICT permit holders from other EU countries who travel to Luxembourg for short-term work.

What This Means for Foreign Nationals

The new ICT Permit should benefit eligible foreign nationals who seek to work in several EU countries. Interested applicants should consult their immigration professional about the specific requirements for ICT permits in each EU Member State where they plan to work, as these could vary.

Foreign nationals under the current ICT permit in Luxembourg who require an extension should consult their immigration professional before their permit expires regarding their options.

This alert is for informational purposes only. If you have any questions, please contact the global professional with whom you work at Fragomen or send an email to beneluxinfo@fragomen.com.

Fragomen, Del Rey, Bernsen & Loewy, LLP, Fragomen Global LLP and affiliates, (collectively known as “Fragomen Worldwide”) is the world’s largest firm dedicated to corporate immigration, and is recognized as the leading global immigration services provider.

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